Legislators in Minnesota are considering taxing digital downloads in their state. This new proposal has been labeled the “iTunes Tax”, and it would require that all downloadable content, whether it is a single song, a video or a ring tone, would have a sales tax added on which the state would collect.
Officials claim that this tax would raise $1.4 million in revenue over the course of a year. Opponents of this proposal argue that a digital download tax would scare off online businesses and would actually limit the growth of the tech industry in Minnesota, but those pushing the bill will likely see it considered in future legislative sessions.